Lots of Cross Currents This Morning

ADP report stronger than expected. There is some debate this morning about the implications of the February ADP Employment Change, which came in at 217,000 jobs created, far higher than the 165,000 gains expected. This is a positive implication for Fridays nonfarm payroll jobs report.

But look what happened: bond yields shot upas some were apparently concerned that the Fed's QE2 program would be ending if strong job growth was materializing, increasing rates. Some have been arguing for months that the end of QE2 would be a headwind for stocks as well, a point made again this morning by Bill Gross in his monthly report. But the dollar — oddly — dropped.

To confuse matters, oil shot decisively over $100 at about the same time, which caused S&P futures to drop. As oil again dropped down after 9am ET, stock futures rose as well.